What is the business cycle? the preferred mode of transport for ecologically aware business owners a recurring cycle of booms and busts recoveries and recessions a system of managing the economy by increasing or decreasing federal expenditures a system of managing the economy by increasing or decreasing the supply of money

## Step 1<br />The business cycle, also known as the economic cycle, is a term used to describe the fluctuations in economic activity that an economy experiences over a period of time. These fluctuations are characterized by periods of economic expansion (growth) and contraction (decline).<br /><br />## Step 2<br />The business cycle is not about the preferred mode of transport for ecologically aware business owners. This option is not related to the concept of the business cycle.<br /><br />## Step 3<br />The business cycle is not about managing the economy by increasing or decreasing federal expenditures. This option is more related to fiscal policy, which is a tool used to manage the economy, but it is not the definition of the business cycle.<br /><br />## Step 4<br />The business cycle is not about managing the economy by increasing or decreasing the supply of money. This option is more related to monetary policy, which is another tool used to manage the economy, but it is not the definition of the business cycle.<br /><br />## Step 5<br />The business cycle is about a recurring cycle of booms and busts, recoveries and recessions. This option accurately describes the nature of the business cycle.